Pfizer To Explore Strategic Alternatives For Its Animal Health And
Nutrition Businesses

Pfizer to Continue to Enhance the Value of its Established
Products and Consumer Healthcare Businesses Within the Company, While
Continuing to Strengthen its Biopharmaceutical Core

July 07, 2011 08:30 AM Eastern Daylight Time

NEW YORK--(BUSINESS WIRE)--Pfizer Inc. (NYSE: PFE) today announced that it is exploring strategic
alternatives for its Animal Health and Nutrition businesses based on its
recent business portfolio review to determine the optimal mix of
businesses for maximizing shareholder value. The company is considering
options that may include, among others, a full or partial separation of
each of these businesses from Pfizer through a spin-off, sale or other
transaction. Given the separate and distinct nature of Animal Health and
Nutrition, the company may pursue a different strategic alternative for
each business.

“Both Animal Health and Nutrition are strong businesses with attractive
customer bases and solid fundamentals, but distinct enough from our core
businesses that their value may be best maximized outside the company,”
said Ian Read, president and chief executive officer, Pfizer. “In
exploring these alternatives, we can determine what options will best
drive their future growth opportunities and expansion, and enable
shareholders to potentially realize higher value for these businesses.”

Pfizer Animal Health is a world leader in the discovery, development,
manufacture and commercialization of products, including vaccines,
medicines, diagnostics and genetic tests, to prevent and treat disease
in livestock and companion animals. This business has operations in more
than 60 countries, an extensive research and development network with
major research centers on four continents and strong market positions
across several geographic regions, including the United States, Europe,
Africa and Middle East, Canada and Latin America, and Asia-Pacific. In
2010, Animal Health achieved revenues of approximately $3.6 billion.

Pfizer Nutrition is a leader in infant and pediatric nutrition,
providing quality formulas and nutritional products for infants and
children up to seven years old. This business has operations on six
continents, products available in more than 60 countries, and a focused
presence in key markets throughout Asia, the Middle East, Europe and
Latin America, with China, Philippines, United Kingdom, Mexico and
Australia being among its top markets. Nutrition generated revenues of
approximately $1.9 billion in 2010.

Pfizer will continue to enhance the value of its Established Products
business within the company. The pharmaceutical industry’s
fastest-growing markets are in the emerging markets, and within the
emerging markets, the fastest-growing segment is off-patent medicines
and their generic equivalents. Given these dynamics and the company’s
footprint and asset base, the company believes that the Established
Products business is well positioned to capture the opportunities being
created by the demographics and rising economic power within these
markets. Also based on this portfolio review, the company believes that
it can continue to enhance the value of its Consumer Healthcare business
within Pfizer. Consumer Healthcare has a strong connection to the
company’s core biopharmaceutical businesses, including the potential
opportunity to extend the value of certain Pfizer legacy
biopharmaceutical products, and strong connections with emerging markets
and pharmacy customers worldwide.

“The actions we’re announcing today are driven by the potential to
create value for shareholders and enable Pfizer to become a more focused
organization, better positioned for future success,” said Mr. Read.
“Ultimately, our decisions will continue to support our long-term
strategy to allocate our resources, investments and people to the areas
that best serve our patients and customers, and generate the best value
for our shareholders.”

The company will continue to assess its businesses and assets as part of
its regular, ongoing portfolio review process and also continue to
consider business development activities for its businesses.

Pfizer has engaged J.P. Morgan in connection with the evaluation of
strategic alternatives for its Animal Health business and Morgan Stanley
and Centerview Partners’ advisory business in connection with the
evaluation of strategic alternatives for its Nutrition business.
Although the timeline for each evaluation may differ, Pfizer expects to
complete any transactions that may result from these evaluations in 12
to up to 24 months, and does not anticipate making any further
announcements regarding strategic alternatives for Animal Health and
Nutrition until sometime in 2012.

Pfizer Inc.: Working Together for a Healthier World™

At Pfizer, we apply science and our global resources to improve health
and well-being at every stage of life. We strive to set the standard for
quality, safety and value in the discovery, development and
manufacturing of medicines for people and animals. Our diversified
global health care portfolio includes human and animal biologic and
small molecule medicines and vaccines, as well as nutritional products
and many of the world’s best-known consumer products. Every day, Pfizer
colleagues work across developed and emerging markets to advance
wellness, prevention, treatments and cures that challenge the most
feared diseases of our time. Consistent with our responsibility as the
world’s leading biopharmaceutical company, we also collaborate with
health care providers, governments and local communities to support and
expand access to reliable, affordable health care around the world. For
more than 150 years, Pfizer has worked to make a difference for all who
rely on us. To learn more about our commitments, please visit us at www.pfizer.com.

DISCLOSURE NOTICE: The information contained in this release is as of
July 7, 2011. The Company assumes no obligation to update
forward-looking statements contained in this release as a result of new
information or future events or developments.

This release contains forward-looking information that involves
substantial risks and uncertainties about the Company’s exploration of
strategic alternatives for its Animal Health and Nutrition businesses,
including the potential benefits and timing thereof, and about the
prospects and potential opportunities for its Animal Health, Nutrition,
Established Products and Consumer Healthcare businesses. Such risks and
uncertainties include, but are not limited to, the possibility that the
Company may not be able to realize higher values for Animal Health and
Nutrition through strategic alternatives; the possibility that the
Company may not be able to consummate, at all or within the specified
time period, any proposals for strategic alternatives for Animal Health
and Nutrition that may result from its evaluation due to, among other
things, market, regulatory and other factors; the potential for
disruption to the Company’s business resulting from the evaluation of
strategic alternatives for Animal Health and Nutrition; and, with regard
to the prospects and potential opportunities for , and the Company’s
ability to enhance the value of, Animal Health, Nutrition, Established
Products and Consumer Healthcare, the uncertainties and variables
inherent in business operating and financial performance, including,
among other things, competitive developments and general economic,
political, business, industry, regulatory and market conditions.

A further description of risks and uncertainties can be found in the
Company’s Annual Report on Form 10-K for the fiscal year ended December
31, 2010 and in its reports on Forms 10-Q and 8-K.